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J U N E / J U L Y 2 0 1 6 6 www.resourceworld.com Gold has been one of the strongest per- forming commodities in 2016 and has had its best quarter in nearly 30 years. The market is experiencing record inflows of gold into exchange traded funds, central banks are net buyers of the metal, and retail investors are believers once again in gold's store of value. Goldcorp Inc. [G-TSX; GG-NYSE], one of the largest pre- cious metal miners in the world, has seen its share price increase over 50% year to date. The gold mining giant has restored approximately CDN $6.75 billion worth of market value since the start of the year. Goldcorp is unhedged to metal prices and has a portfolio of long-lived, high qual- ity assets. Key producing assets include Red Lake, Porcupine, Musselwhite, and Éléonore in Canada, Penasquito in Mexico, Cerro Negro in Argentina, and Pueblo Viejo (40% interest) in the Dominican Republic. All mines are situated in relatively low- political risk and pro-mining countries in the Americas, which shareholders have grown to identify with Goldcorp's busi- ness strategy. Since the New Year, the company has also welcomed David Garofalo, CPA, CA, who was appointed President and Chief Executive Officer in February 2016. Mr. Garofalo is an experienced mining executive with a track record of creating shareholder value through implementing accretive corporate strategies. He espouses financial discipline and investing in low- cost, long-life mines in safe jurisdictions as essential components in his corporate framework. This has served him well in past roles guiding producers to profitabil- ity and will be imbedded in his tenure at Goldcorp. Mr. Garofalo commented on the state of the gold market at the 2016 Annual General Meeting, "Mine supply is coming down in a significant fashion. Goldcorp performed a recent analysis by reviewing the press releases of the top 10 gold pro- ducers and over the next three years they are forecasting, with their own portfolios, an 8% decline in gold supply. The top 10 producers in the world represent about 40% of gold supply, so this is a representa- tive sample of what the industry is facing over the next three years. "We are in peak mine supply and it is very difficult to get new mine supply on stream. The average lead time to new pro- duction is about 10 years. To add to this point, there is a complete lack of 5 million- ounce, shovel-ready gold deposits ready to build. Goldcorp is actively looking as we are mining 3 million ounces of gold every year. We have to find two Red Lake deposits a year just to replace what we are pulling out of the ground." Ian Telfer, Chairman, shared a simi- lar view at the 2016 AGM by stating, " I can certainly tell you now that I feel The éléonore gold mine in the James Bay region, 320 km north of Matagami, Québec. Photo courtesy Goldcorp Inc. by Andrew Nelson, Davidson & Company LLP Peak gold mine supply is here Goldcorp restoring market value